Orocobre (ORE)

Shares in the lithium-potash developer have dropped despite resource estimates for its flagship Salar de Olaroz project more than four times higher than initially expected. The measured and indicated resource is 6.4 million tonnes of lithium carbonate, equivalent and 19.3 million tonnes of potash equivalent.
Orocobre
says high production grades will reduce capital costs for the evaporating ponds as less evaporation time is required. Lithium is used in the production of electric cars and Orocobre holds a 75 per cent operating stake in a joint venture with Toyota Tsusho. Capital expenditure more than doubled to $11.5 million in the December half, but the company raised about $C20 million in February, all of which is earmarked for Olaroz. Basic earnings per share for the half were $1.63, down from $2.37 a year earlier. The stock is trading about 34 per cent below its January high, which it hit after confirmation of planning approval for the project.